OM Group Beats Expectations but Takes a Step Back Anyway

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OM Group (NYS: OMG) reported earnings on May 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), OM Group met expectations on revenues and beat expectations on earnings per share.

Compared with the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped significantly.


Margins shrank across the board.

Revenue details
OM Group tallied revenue of $466.2 million. The one analyst polled by S&P Capital IQ anticipated revenue of $473.0 million on the same basis. GAAP reported sales were 41% higher than the prior-year quarter's $331.3 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.72. The three earnings estimates compiled by S&P Capital IQ anticipated $0.65 per share. GAAP EPS of $0.37 for Q1 were 63% lower than the prior-year quarter's $1.00 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 24.2%, 60 basis points worse than the prior-year quarter. Operating margin was 7.4%, 370 basis points worse than the prior-year quarter. Net margin was 2.6%, 670 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $460.9 million. On the bottom line, the average EPS estimate is $0.75.

Next year's average estimate for revenue is $1.54 billion. The average EPS estimate is $2.99.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on OM Group is hold, with an average price target of $39.00.

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At the time this article was published

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